REVERSE LOGISTICS & ITS APPLICATION IN AFTER MARKET SERVICES

Agenda

Introduction Cycle Reasons Challenges Benefits Implications Of Reverse Logistics In After Market Services

Introduction
It is "the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.

Reasons For Reverse Logistics

Product non performance Short term requirements Product repair of re-filling Reusable containers of packages Return of goods not used by the customer or not sold Exchange of new products for the old ones Up gradation or modification Recycling

Reverse Logistics Cycle

Benefits of Reverse Logistics

Reduced costs Optimum utilization of resources Customer retention Waste management Reduction of defects Better image in the market Reduced environmental impact

Reverse Logistics - An Effective Strategy For Revenue Maximisation

CPG companies can save 10% from their annual logistics by implementing an efficient reverse logistics system Average 3% to 5% of all companies expenditure are spent on Reverse logistics activities bringing benefit of 3% to 15% of the overall bottom line Nearly 20% of all goods that are sold are returned

Benefits Of Investing Reverse Logistics In After Market Services

76% improved customer satisfaction 64% reduced Service cost 40% increased service profitability 30% increased service revenue 24% improved new part procurement cost Higher revenue realisation from secondary sales by offering fresh stock in place of old stock Reduction in cost by lowering cost of goods sold (COGS) and operating expenses Improved inventory management End of product life cycle or product replacement The Green Way: Win customer loyalty by acting in an environment responsible manner

Challenges in Reverse Logistics

Difficulty in forecasting Cost visibility is low Inconsistent product quality Pricing depends on many factors Inconsistent inventory management Resources allocation Legal issues Company policies

Implications of Reverse Logistics in After Market Service

Better brand image & trust Customer satisfaction & Brand loyalty Consistency & PLC stability Reduced environmental impact Quality assurance Lesser lead time

Implications of Reverse Logistics in After Market Service

Thank you